Drugmaker Lupin has received a thumbs up from its board of directors to raise up toRs. 7,500 crore, possibly with an eye on acquisitions.
Only last month, Lupin Managing Director Nilesh Gupta had said that the spotlight was clearly on an acquisition this year.
The acquisition could be of speciality products or companies in the US or Europe, Gupta had toldBusinessLine .
The company could also look at acquisition of companies as a strategy to gain entry into markets where it did not have a presence, like Brazil or Russia, he had said.
In fact, the Brazil acquisition was announced the day Gupta explained his company’s road ahead.
Brazil market
Lupin acquired 100 per cent equity in Brazil’s Medquímica Indústria Farmacêutica SA, marking its foray into the high growth Brazilian market.
The transaction was also expected to shore up its position in the Latin American pharmaceuticals market given its acquisition of Laboratorios Grin in Mexico last fiscal. On Tuesday, Lupin told the stock exchange that its board had given an in-principle approval to raise funds through the issue of securities that is, equity shares, GDRs, ADRs, convertible bonds, equity linked instruments and so on.
The enabling resolution will seek shareholder approval at the annual general meeting later next month.
An Angel Broking report said that at current market price, the equity dilution would be about nine per cent, depending on the option Lupin chooses to raise funds.
The report also added that the funds were possibly towards an acquisition.
